The NCUA received a report of the Corporate Stabilization Fund (Quarterly Report), issued a Final Rule amending Part 703.14 related to Permissible Investment Activities – Bank Notes, and received a report on Enterprise Solutions Modernization Program.  

Corporate Stabilization Fund Quarterly Report.

Rendell L. Jones, Chief Financial Officer presented the Quarterly Report on the Corporate Stabilization Fund.  Jones reported Revenue of $154.3 million and Expenses of $146.4 Million with a Net Income of $300.7 million.  Jones noted the fund had received unqualified clean opinions from the auditors for the 7^th year in a row from KPMG.  Jones stated that the possibility of any rebate would not occur until 2021.  All payouts are being used to pay down borrowings from Treasury.  Chairman Matz also noted they expect to announce more settlements from the ongoing litigation in the near future.

Final Rule, Part 703.14, Permissible Investment Activities – Bank Notes.

This Final Rule was adopted by the Board, which amends the maturity requirement for bank notes to be a permissible investment for federal credit unions by removing the word “original” from the current requirement that bank notes have “original weighted average maturities of less than 5 years.  The rule will be effective 30 days from publication in the Federal Register. 

Enterprise Solutions Modernization Program.

Authorization was provided for $75,000 annually for four years to create two temporary positions to lead the Enterprise Solutions Modernization Program, with a corresponding reduction of two field positions.  These positions are to coordinate projects approved in the 2016-2017 operating budget for a series of information technology initiatives that include needed, next generation upgrades to examination and information gathering systems and modernizing NCUA’s data storage and infrastructure, as well as changes to document management policies and practices.  This includes upgrades to the AIRES and Call Report.  In response to questioning staff, it was indicated that the upgrades could set the platform to make an extended exam cycle as a possible direction for the board to take.  They further indicated that the upgrades should result in the ability to conduct more off site monitoring and ultimately lead to less time spent on-site in a credit union.

Note:  The closed portion of the Board Meeting considered a Share Insurance Appeal.  No other information was provided.